Harrods dives into first ESG report, makes progress but lots still to do

Harrods has released its first-ever Environmental, Social and Governance (ESG) report, “marking a milestone” in its sustainability journey.

Covering the 12 months to the end of January this year, it shows the luxury retailer “making progress against previously set targets on decarbonisation, setting new targets and glide paths in important areas such as product development and circularity, and introducing ambitious new strategies to support the people and community in key areas, such as diversity, equity and inclusion”.

It admitted that “we still have much to do on our sustainability journey” but said that so far it has achieved a 2.4% reduction in Scope 1 & 2 carbon emissions against the 2022 baseline year.

Its aim is to reduce its absolute Scope 1 and 2 greenhouse gas emissions by 90% by 2030. 

But it said that “working within a 175-year-old Grade II-listed building can present a unique set of challenges for driving efficiency. We seek to balance a respect for history with the innovation that has brought us to our 175th year”.

However, it has seen a substantial decrease in consumption at its Knightsbridge store (10% in its gas consumption and 2% in its electricity consumption), driven by initiatives such as upgrading boilers and moving to LED and light-sensor-based lighting systems for the shop floor, external façade and adjoining offices. Eighty per cent of lights in the main store are LED.

It has also installed solar panels at its Thames Valley Distribution Centre, providing 41% of the site’s annual power requirement.

And it has launched a data capture campaign “to better understand the demographic of our colleagues and candidates applying for roles with Harrods”.

Meanwhile it’s driving sustainable practices such as repair and rental and said 700 pieces have been rented by customers through its partnership with MyWardrobeHQ. The range includes designer pieces such as dresses, trousers, and occasionwear, available for customers to rent for four to 14 days.

Other initiatives include actions like electric delivery vehicles, and it replacing the Harrods PVC Shopper Bag with sustainable alternatives in line with its goal to eliminate PVC from Harrods’ own-brand products by 2027. Following a successful pilot with cotton bags in 2023, this change will be fully implemented in 2024.

It’s also put in place a responsible sourcing programme across multiple categories from fashion too food and also launched the H beauty recycling scheme across all H beauty sites.

And it signed off and launched Harrods’ new Community Pillar strategy and began the process of onboarding five key charity partners.

MD Michael Ward said: “For 175 years, Harrods has stood as a beacon of British luxury [but] we recognise that it is only by putting the sustainability of our business, our supply chain and the planet at the forefront of our business, that we can assure the continuing high standards that we have always stood for and that our customers expect.”